The Economics of Rice Farming in Dhanusha District, Nepal: Production and Technology Adoption

Citation

Abstract / Synopsis

This study is concerned with the input-output relationship
in rice cultivation and examination of difference in response of
modern and traditional varieties of rice with respect to the
application of fertiliser. An attempt has also been made to
evaluate the costs and returns of cultivating rice crop. Finally,
influence of various techno-socio-economic variables that might
be associated with the adoption of a modern variety rice and
use of fertiliser in the rice crop has been examined.
Survey data obtained by interviewing 147 farmers of
selected eight Village Panchayats of Dhanusha district were used
for the analytical purpose. Production function analysis was
used to ascertain input-output relationship in rice cultivation.
Difference in response between modern and traditional variety
rice with respect to fertiliser use was also examined within
production function analysis framework. Costs and returns were
computed to evaluate the net returns. Maximum likelihood logit
analysis was employed to determine decision regarding the
adoption of modern variety rice and use of fertiliser in rice crop.
Irrigation, application of compost and nitrogen appeared
likely to increase the yield of rice crop. Although the response
of modern variety rice to nitrogen fertiliser seemed better than
that of traditional variety, the evidence was fragmentary. Net returns were found to be higher for modern variety rice than
for traditional variety.
Schooling, family size, paddy acreage, proportion of
land area irrigated, extension visits and fertiliser use were
the important variables that influenced farmers' decision to
adopt a modern variety rice, while variables such as age,
family size, non-farm income, paddy acreage, proportion of land
irrigated, radio listening, extension visits and modern variety
use were important in deciding whether to use fertiliser.
Interestingly, however, schooling had negative relation in both
the decisions regarding adoption of a modern variety or use of
fertiliser.
Other things equal, co-operative members who were exposed
to extension activities were more likely to adopt a modern variety
rice or use fertiliser than non co-operative members who sere
not exposed to any of the extension activities.
v
Comprehensive government programmes to ensure the availability
of fertilisers, effective administration of credit, strengthening
of extension services and providing other infrastructure would
be vital for adoption of a modern variety rice and use of fertiliser. This in turn could lead to increase in farm
productivity.